The zombie housing market meme continues over at Naked Capitalism. "Zombie titles" doesn't refer to the back catalog of horror films, but to a mortgage mistake. "Servicers initiate a foreclosure and complete most of the steps, including evicting the borrowers, but then fail to take title to the house. "
It gets pretty hairy:
Adding insult to injury, the banks rarely inform the former homeowner of this cynical move. Not only does often find out years later that he’s on the hook for property taxes and in some cases, fines from the local government, but the servicer has made such a mess of title that the owner can’t get rid of the property, unless he takes a quiet title action, which typically can’t commence until five years after the foreclosure was abandoned.
Read more for the economic implications.
The zombie meme just keeps going, doesn't it?